Investigating the adaptability of relational contracting (RC) practices – The Sri Lankan context

Abstract

Despite the plethora of research and industry reports promoting the use of relationship-based procurement approaches, the Sri Lankan construction industry still remains dominated by traditional procurement and contracting strategies. The industry suffers from the numerous drawbacks inherent to the traditional procurement environments. Research elsewhere suggests that adaptation of relationship-based procurement approaches could help uplift the industry performance drastically. This research examines the adaptability of relational contracting (RC) practices (e.g. partnering and alliances) to the Sri Lankan construction industry. The findings of the paper are mainly based on a questionnaire survey. Data gathered were subjected to quantitative analysis. Overall, the research suggests that there is a facilitating environment to RC within the Sri Lankan construction industry. Findings of the research also reveal that the contractors in general were more supportive towards adaptation of RC approaches than the consultants. Furthermore, the level of existence of facilitators to RC (and hence, the adaptability of RC) appears to have a positive co-relation with the level of integration in project teams.